The co-founder and managing partner at Kenetic Capital, a blockchain investment firm, says the increasing presence of institutions in the world of cryptocurrency is providing a strong backbone for the future of the emerging industry.
Jehan Chu told Bloomberg he believes Bitcoin will rise 244% to $30,000, as investors look for alternative types of technology investments.
“What people are really seeing now is that cryptocurrency is not going away. And you don’t have to take my word for it. It’s Facebook, it’s Jamie Dimon, it’s Rakuten, it’s Fidelity – all who are getting in the space either in building infrastructure or providing services. So that’s first. It’s going to drive mindshare and drive adoption. Second, I think what we’re seeing is a counter-cyclical argument. With the recent disappointments of Uber and Lift IPO-ing in the market, people are looking for a different type of tech story, and one that’s perhaps accessible to all. And finally, the Bitcoin halving is coming. And traditionally that’s pushed the price in double-digit percentages. So a combination of these three factors, I think, will really see us getting from where we are now to $30,000.”
Although Bitcoin is top dog, Chu says the blockchain and crypto movement at large is about much more than BTC.
“Bitcoin is the biggest brand. It’s the massive elephant in the room and it definitely has a center of gravity that many other cryptocurrencies and coins benefit from. It’s going to pull up the rest of the market. But in truth, many of the different applications that back the cryptocurrencies in their own right are developing on their own story and developing utility. So these are the other altcoins that have their own large market caps, like Ether, which is coming up to its own on-year highs.”
Chu says the potential of Ethereum, along with Ripple and XRP, are not to be underestimated.
“From a utility standpoint, we’re seeing Ethereum as the lead. The rate of adoption and the rate of development that the Ethereum team, providing a decentralized global computer, is just astounding. People keep saying Ethereum is going away, but it’s not going away. It’s still one of the largest coins in the world with the largest developer audience. And I think Vitalik Buterin, the 24-year-old founder of Ethereum being on stage with Sache Nadala at the recent Microsoft conference really shows not just how much traction there is on the ground, but also with the major institutions who are determining the future of technology. So I think Ethereum is definitely a bullish call. I’m also interested to see what Ripple does. I think Ripple’s made great headway in providing different types of payment currencies to many of the banks and getting key partnerships around the world.”
When it comes to whether the SEC will approve a Bitcoin ETF, Chu says it would be great, but not central to the success of the industry.
“Commissioner Peirce has said it is the time for an ETF, but there are still questions which are outstanding. And that’s fair. To be honest, I’m not waiting with bated breath for an ETF to be listed anytime soon. If it does, great. But to be honest, we’re going to be getting major traction and major volume increase from people like Fidelity who’s offering institutional custody and trading, to eTrade to Ameritrade to Rakuten. Samsung is now putting out a cryptocurrency wallet and all these factors are going to drive adoption regardless of whether an ETF comes tomorrow or in 10 years.”
Right now, Bitcoin is down 0.30% at $8,632 according to COIN360. Ethereum is up 1.12% at $271.53, and XRP is up 0.91% at $0.4437.
Technical analysts are eyeing Bitcoin’s odds of continuing its recent winning streak as altcoins search for support.
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Litecoin, Bitcoin Cash, Binance Coin, Tron, Stellar, EOS, Cardano